Commentary: We shifted our view on bitcoin to an Uptrend Under Pressure from Confirmed Uptrend as due to the elevated number of distribution days in GBTC (six distribution days). GBTC is down 5% for the week and is now 14% of highs. Level of support: 50-DMA ($73; 2% away).
Author: Romeo Alvarez
Romeo Alvarez is a senior equity analyst at William O’Neil + Co., a registered investment advisor serving 400 top-performing institutional portfolio managers worldwide. The firm employs 150 associates in Los Angeles, New York, Boston, and London.
Based in the firm’s Los Angeles office, Mr. Alvarez is a senior equity analyst covering the Americas region and a member of the Global Focus List Committee, which approves all equity recommendations for developed, emerging, and frontier markets. Romeo also selects equity initiations to be covered in the Technology sector and regularly reports to clients on innovation and technology developments in Trend Watch.
Mr. Alvarez earned a B.S. in Business Economics from the University of California, Riverside, and an MBA with a focus in Finance from Loyola Marymount University, Los Angeles.
LATAM Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- Brazil’s Bovespa index declined 1.4% last week and continues to trade below its 200-DMA. The index remains in a Downtrend. We recommend clients avoid adding risk in Brazilian equities.
- Mexico’s main benchmark declined 0.7% last week and continues to trade below all its key moving averages. The index is in a Rally Attempt. We recommend clients wait for a follow-through day before adding risk in Mexican equities.
- The total number of Focus List ideas in the LATAM region remains at four.
- Stocks of interest: Suzano (SUZ.BR; SUZB3 BZ), Latam Airlines Group (LAN.CL; LTM CI) and Grupo Aeroportuario del Pacifico (GAP.MX; GAPB MM).
O’Neil TMT Weekly
Software (IGV): The software benchmark has pulled back for the fourth consecutive week, and breached support at its 50-DMA
($101). Next support is at its rising 100-DMA ($95). The IGV is 8% off highs and quantitative metrics have declined over the past few
weeks: RS line has turned lower, while the numerical Acc/Dist Rating remained negative at -13, along with a letter rating of D+. While
the majority of software constituents are consolidating, only a few are at or near a pivot including CRM, KVYO, PCOR, and SQ.
Despite the consolidation, three of the 12 industry groups have shown improvement in Group Rank over the last four weeks, with
Medical (#38) and Tech Services (#22) showing the sharpest improvement, followed by Credit Card & Payment Processors (#27).
We recommend being cautious and reducing exposure in ideas breaking below key support levels.
O’Neil Global Cryptocurrency Weekly
Commentary: We maintain a positive view on the crypto market as GBTC continues to trade above the 50-DMA. It is up more than 3% for
the week. Next level of resistance: 21-DMA ($78.04; 1% away). Most crypto-related stocks are extended from proper buy points. We
recommend to accumulate on a bounce off support at the 21-DMA or 50-DMA.
LATAM Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- Brazil’s Bovespa index declined 1.5% last week as it continues to trade below the 200-DMA. The index remains in a Downtrend. We recommend clients avoid adding risk in Brazilian equities.
- Mexico’s main benchmark declined 0.6% last week as it continues to trade below all its key moving averages. The index was shifted to a Rally Attempt from a Downtrend. We recommend clients wait for a follow-through day before adding risk in Mexican equities.
- The total number of Focus List ideas in the LATAM region remains at four.
- Stocks of interest: Latam Airlines Group (LAN.CL; LTM CI), Suzano (SUZ.BR; SUZB3 BZ) and Aguas Andinas (EMO.CL; AGUAS/A CI). Additional ideas are listed on page 3.
O’Neil TMT Weekly
Software (IGV): The software benchmark has pulled back for the third consecutive week, trading below its 21-DMA ($105). It is
testing support at its rising 50-DMA ($101). The IGV is 8% off highs and quantitative metrics have declined over the past few weeks:
RS line has turned lower, while the numerical Acc/Dist Rating has turned negative to -3, along with a letter rating of C. Majority of
software constituents are consolidating, including leaders – NOW, PLTR, RBRK, SAP – holding above key moving averages while
many quality ideas – FICO, IBM, ORCL, PANW – have pulled back into bases. Despite the consolidation, five of the 12 industry
groups have shown improvement in Group Rank over the last four weeks, with Tech Services (#23) and Medical (#38) showing the
sharpest improvement. We recommend being cautious and reducing exposure in ideas breaking below key support levels
O’Neil Global Cryptocurrency Weekly
Commentary: We maintain a positive view on the crypto market as GBTC continues to trade above its 50-DMA. GBTC has pulled back
nearly 1% this week. Next level of support: 50-DMA ($68.96; 9% lower). A bounce off the 50-DMA could serve as a potential buy point.
LATAM Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- Brazil’s Bovespa index declined 2% last week and continues to trade below its 200-DMA. The index was shifted to a Downtrend. We recommend clients avoid adding risk in Brazilian equities.
- Mexico’s main benchmark declined 3.9% last week and broke below its 50-DMA. The index was shifted to a Downtrend. We recommend clients avoid adding risk in Mexican equities.
- BBB Foods (TBBB) was removed from the Focus List, taking the total number of Focus List ideas in the LATAM region to only four.
- Stocks of interest: JBS (JBS.BR; JBSS3 BZ), Klabin (KLU.BR; KLBN11 BZ), Grupo Aeroportuario Del Pacifico (GAP.MX; GAPB MM) and Plaza (MAL.CL; MALLPLAZ CI).
O’Neil TMT Weekly
Software (IGV): The software benchmark pulled back 2% on above average volume and is testing support at its rising 50-DMA
($100). Quantitative metrics have declined as the Acc/Dist Rating has turned negative to -3. Only a few ideas are setting up, including
ACN and BRZE while the majority of constituents are pulling back and consolidating. Seven of the 12 industry groups showed
improvement in Group Rank over the last four weeks, with Medical (#45) and Tech Services (#34) showing the sharpest improvement,
followed by Enterprise (#12) and Desktop (#166). We recommend a cautious approach and recommend looking for stocks to find
support and consolidate.
O’Neil Global Cryptocurrency Weekly
Commentary: We maintain a positive view on the crypto market as GBTC continues to trade above its 50-DMA. GBTC has pulled back 5.5%
this week, breaching support at its 21-DMA ($78.19). Next level of support: 50-DMA ($66.94). Many stocks are retreating to key moving
averages, and we expect them to hold these levels. A bounce off the 50-DMA could serve as a potential buy point.
